Good morning investors! This is going to be an earnings-heavy week.
Today we cover:
What to expect this week
US-Iran stop attacks
Deferred capital gains? Time to pay.
📊 Economy and News
What to Expect this Week
Here’s what to keep an eye on this week:
Monday, July 27
Durable Goods Orders (8:30 a.m. ET) — June data; prior month showed a sharp drop.
Lighter earnings day with smaller reports (e.g., Applied Digital, Baker Hughes, AstraZeneca, Bank of Hawaii). Markets open the week after consecutive weekly losses for the major indexes.
Tuesday, July 28
Conference Board Consumer Confidence Index (10 a.m. ET) — Sentiment remains near historic lows despite a modest rise last month.
Earnings: PayPal (before the open), Visa (after the close), Seagate Technology (after the close). Credit-card stocks have recovered from earlier rate-cap concerns; Seagate previously raised its outlook.
Wednesday, July 29
FOMC rate decision (2 p.m. ET) followed by Chair Kevin Warsh’s press conference (2:30 p.m. ET). Officials have flagged AI infrastructure spending as a possible longer-lasting inflation factor. No change is expected this week, though later hikes remain possible.
Earnings (all after the close): Meta Platforms, Microsoft, Qualcomm, Arm Holdings, Starbucks, and Lam Research. Meta and Microsoft commentary on AI monetization and cloud/compute demand will be closely watched. Qualcomm and Arm are shifting toward data-center products amid softer smartphone demand. Starbucks continues its turnaround push.
Thursday, July 30
Economic data (8:30 a.m. ET): Advance Q2 GDP estimate and the Fed’s preferred inflation gauge (PCE price index / Personal Income & Outlays).
Earnings (after the close): Amazon and Apple. Amazon has raised prices on AI training/run hardware rentals and posted strong recent Prime Day sales. Apple previously beat estimates with upbeat iPhone demand commentary.
Global hits:
China economic growth set to slow in H2 as Beijing avoids broad stimulus.
Kuwait signs $16 billion oil pipeline deal with Blackstone, KKR and Brookfield.
Trump faces Apple-Micron clash over Chinese memory chips.
Reminder: Trump sued hours after new tariffs take effect, as experts say they may not hold up. Moreover, countries like Australia and Canada plan on fighting it.
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📈 Stocks
S&P 500 7,411.98 (+0.052%)
DJIA 51,947.25 (+0.46%)
NASDAQ 24,975.82 (-0.67%)
BRENT CRUDE 92.26 (-4.37%)
* Prices as of Jul 27th, 12:20 AM UTC
US and Iran Pause Attacks
Iran will stop its attacks as long as the United States maintains its current pause on airstrikes, a senior Iranian official told Reuters.
The pause follows 13 consecutive nights of U.S. strikes. The Pentagon halted operations late Friday, marking the first two-day break in the campaign. No U.S. attacks have been reported since.
Iran’s position remains “attack for attack”: if U.S. strikes stop, Iran will also halt its operations. That message has already been conveyed to Washington.
U.S. Ambassador to the UN Mike Waltz said President Trump paused the attacks to create space for diplomacy. A senior administration official noted that diplomacy remains preferred, though Iran has been shown the costs of refusing serious talks.
Iran also refrained from attacking neighboring countries over the weekend, creating a temporary lull in Gulf fighting. The U.S. naval blockade of Iran remains fully operational.
Meanwhile, tensions have shifted to the Red Sea. Iran-aligned Houthi forces attacked Saudi Aramco facilities in Jizan and Yanbu. Smoke was seen near the Jizan refinery (capacity 400,000 barrels per day), while two missiles targeting Yanbu were intercepted. Houthis have declared a naval blockade of Saudi Arabia and previously hit two Saudi tankers.
Saudi-backed Yemeni forces struck Houthi sites in response, raising fears that Yemen’s civil war could reignite after a 2022 ceasefire.
In a separate development, Iran accused Ukraine of attacking an Iranian commercial vessel in the Caspian Sea, killing one sailor and injuring another.
Interesting: Nvidia said it’s secured AI memory supply from SK Hynix, potentially alleviating a concern as the memory market faces a global shortage.
On the other hand, CXMT’s massive listing is prompting investors to raise cash, fueling concerns over a temporary market liquidity drain.
Lastly, Samsung Electronics has struck a pact with U.S. chip designer Broadcom to widen cooperation across memory chips.
Shein’s losses: Shein swung to a $99 million quarterly loss due to slowing sales after the U.S. removed an import duty exemption on small packages and a hefty one-time accounting charge, the online retailer’s pre-IPO financial filings showed on Sunday.
💵 Personal Finance
High-Income Investors Face Big Tax Bill as Opportunity Zone Deferrals End in 2026
High-earning investors who deferred capital gains through Qualified Opportunity Funds will see those taxes come due at the end of 2026.
Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones let investors roll realized capital gains into funds targeting distressed areas. The gains could be deferred until Dec. 31, 2026. Early investors also got basis step-ups: 15% for those who invested by the end of 2019 and 10% for those in by the end of 2021. After a 10-year hold, any new gains on the investment itself are generally tax-free.
Treasury data shows about $75 billion in deferred gains at the end of 2024, held by roughly 41,000 investors across 12,800 funds. Most investors are individuals with average adjusted gross income of $738,000.
Experts advise planning ahead to cover the tax bill. Many funds may offer liquidity options, but most investors are expected to stay in to reach the valuable 10-year tax-free exit.
Starting in 2027, new rules make the program permanent with refreshed zones. Investors will get a five-year deferral and 10% basis step-up regardless of timing, with a boosted 30% step-up for rural-focused investments.
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